Comments on: Charles Schwab YieldPlus Fund Lawsuits

By: mike

mike — Wed, 22 Dec 2010 12:42:55 +0000

I was overweighted in this fund the same way a lot of the folks above were: it seemed, and was presented to investors, as an ultraconservative short-bond fund that was a good place to park money during turbulent times. i got out with relatively few losses (lucky!) because i kept looking at the chart and thinking “this shouldn’t be acting this way–IF schwab was telling me the truth in the fund description.” Like I said, I was lucky but I know tons of people weren’t. What kills me is that these people were being CAUTIOUS, not speculative, with their life savings in a tough market…. and Chucky-boy still found a way to take them to the cleaners with this totally misrepresented fund. Sick!

By: camille

camille — Sun, 16 May 2010 18:24:50 +0000

I was lucky to change from Schwab prior to the meltdown, but can verify that they represented Yield plus as very safe with a higher yield. I’d held it until I moved accounts and count my blessings everyday I changed brokerages.

They also represented Lehman Bros as ultra safe. I’d questioned them about amount they wanted me to invest and lost part of it.

I’m surprised some of them aren’t in jail.

By: mark

mark — Mon, 10 May 2010 02:47:00 +0000

I was not aware of the class action Schwab Yield Plus lawsuit. I just did a little research and found Yield Plus share holders had to opt out of the class action lawsuit December 28, 2009. Can anyone confirm it is not possible to pursue an individual financial fraud claim?
“A federal court overseeing the Charles Schwab YieldPlus class action lawsuit has set a deadline of December 28, 2009, for members of the class to opt-out and pursue their own individual financial fraud claims”

By: William

William — Wed, 16 Dec 2009 21:10:48 +0000

Schwab, through its one of its agents led me to believe that my investment in the Schwab Yield Plus Fund was safe and a good place in which to invest my money for earnings. It trusted Schwab. That was a huge mistake. ]
To date, I lost half of my investment. Were I to opt out now
I would guarantee that my loss is permanent.
A short while ago I spoke to a representative of the Glardi law firm in California and was informed that at present they do not know whether of not there is enough evidence to go forward with a class action against Schwab. Big disappointment

By: Rick

Rick — Mon, 09 Mar 2009 05:10:10 +0000

What a massive rip-off! I asked to put my money into a MM fund and was told by the rep that YieldPlus was just as safe with slightly more yield. This was egregious misrepresentation! Please send information on what type of suit I can file. I’m furious about this subject!

By: steve

steve — Wed, 21 Jan 2009 17:47:29 +0000

I too was parking funds in an ultra-safe “money-market equivalent” until I had a chance to safely diversify this money into stocks. I smelled something rotten in Denmark (or Phoenix) and called in early 2008 to ask about sub-prime exposure . . . it was described as minimal, less than 5%. We all know this wasn’t true. I barely escaped at 20% down, avoiding the additional 20% that it went down within a short time of my withdrawal. I lost around $30K.

I’m convinced the class action is not the way to go but since this seems kind of cut and dry I’m considering filing my own FINRA arb and basically using the material in the class action to support my complaint.

Any comments from other Yield Plus victims?

By: Rick

Rick — Wed, 14 Jan 2009 04:12:24 +0000

What a rip-off! What mismanagement! People investing safe money in what was repeatedly described as the next thing to a money-market fund. It will a travesty if “talk to Chuck” does not reimburse good folks for the thousands of dollars lost per person. I’m furious and I won’t give up!

By: john

john — Sat, 20 Sep 2008 15:08:43 +0000

I invested in the yield plus because the prospectus offered more yield with only “slightty” more risk. By the time I sold in Feb 2008, I had lost over $36,000.

By: victoria

victoria — Thu, 19 Jun 2008 15:35:11 +0000

I lost over $100,000.00 in the Schwab Yield Plus Fund. I was told that although my return would be low, my money was safe while we continued to diversify my portfolio. I was lead to believe I would not lose any of the principle. At one time over 50% of my total retirement portfolio was in this fund (recommended by Charles Schwab). My husband and I worked for over 35 years to build our retirement portfolio, and to be mislead by Charles Schwab investors like this is total fraud. Why would anyone trust Charles Schwab as their financial institution after this misleading and devastating advice? Why has the public not heard about this through the national news? I am retired and I feel as though people who are looking for an investment company should know about this situation and the extent of loss incurred by Schwab’s misrepresentation. I am sure many people would not trust Charles Schwab with their hard earned money. I talked to “Chuck” and he lied!!!!!!!!!!

By: pat

pat — Thu, 05 Jun 2008 23:34:58 +0000

Lost much more than the above resonses. Felt this was a money market equivalent safe fund.